Is DigitalOcean Holdings Stock a Good Investment?
DigitalOcean Holdings Investment Advice | DOCN |
- Examine DigitalOcean Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research DigitalOcean Holdings' leadership team and their track record. Good management can help DigitalOcean Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Internet Services & Infrastructure space and any emerging trends that could impact DigitalOcean Holdings' business and its evolving consumer preferences.
- Compare DigitalOcean Holdings' performance and market position to its competitors. Analyze how DigitalOcean Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if DigitalOcean Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about DigitalOcean Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in DigitalOcean Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if DigitalOcean Holdings is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Above Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine DigitalOcean Holdings Stock
Researching DigitalOcean Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 32.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.87. DigitalOcean Holdings had not issued any dividends in recent years.
To determine if DigitalOcean Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding DigitalOcean Holdings' research are outlined below:
| DigitalOcean Holdings had very high historical volatility over the last 90 days | |
| DigitalOcean Holdings has high likelihood to experience some financial distress in the next 2 years | |
| About 60.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: DigitalOcean to Participate in UBS Global Technology and AI Conference |
DigitalOcean Holdings Quarterly Liabilities And Stockholders Equity |
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DigitalOcean Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in DigitalOcean Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to DigitalOcean Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact DigitalOcean Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises DigitalOcean Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-02-24 | 2021-12-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2024-05-10 | 2024-03-31 | 0.38 | 0.43 | 0.05 | 13 | ||
2022-05-04 | 2022-03-31 | 0.12 | 0.07 | -0.05 | 41 | ||
2021-11-04 | 2021-09-30 | 0.07 | 0.12 | 0.05 | 71 | ||
2024-02-21 | 2023-12-31 | 0.37 | 0.44 | 0.07 | 18 | ||
2021-08-05 | 2021-06-30 | 0.05 | -0.02 | -0.07 | 140 | ||
2023-11-02 | 2023-09-30 | 0.36 | 0.44 | 0.08 | 22 | ||
2023-02-16 | 2022-12-31 | 0.2 | 0.28 | 0.08 | 40 |
Know DigitalOcean Holdings' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as DigitalOcean Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading DigitalOcean Holdings backward and forwards among themselves. DigitalOcean Holdings' institutional investor refers to the entity that pools money to purchase DigitalOcean Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Principal Financial Group Inc | 2024-09-30 | 1.3 M | Van Berkom And Associates Inc | 2024-09-30 | 1.3 M | Jpmorgan Chase & Co | 2024-06-30 | 1.2 M | Wellington Management Company Llp | 2024-06-30 | 1.2 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1.1 M | Hood River Capital Management Llc | 2024-09-30 | 1 M | Wolf Hill Capital Management, Lp | 2024-06-30 | 880.6 K | Susquehanna International Group, Llp | 2024-06-30 | 870.1 K | Bank Of New York Mellon Corp | 2024-06-30 | 766 K | Blackrock Inc | 2024-06-30 | 9.4 M | Vanguard Group Inc | 2024-09-30 | 8.3 M |
DigitalOcean Holdings' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 3.57 B.Market Cap |
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DigitalOcean Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.02 | |
| Return On Capital Employed | 0.01 | 0.01 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | (0.06) | (0.06) |
Determining DigitalOcean Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if DigitalOcean Holdings is a good buy. For example, gross profit margin measures DigitalOcean Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of DigitalOcean Holdings' profitability and make more informed investment decisions.
Evaluate DigitalOcean Holdings' management efficiency
DigitalOcean Holdings has return on total asset (ROA) of 0.0438 % which means that it generated a profit of $0.0438 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.3868) %, meaning that it created substantial loss on money invested by shareholders. DigitalOcean Holdings' management efficiency ratios could be used to measure how well DigitalOcean Holdings manages its routine affairs as well as how well it operates its assets and liabilities. At this time, DigitalOcean Holdings' Return On Tangible Assets are very stable compared to the past year. As of the 28th of November 2024, Return On Capital Employed is likely to grow to 0.01, though Return On Equity is likely to grow to (0.06). At this time, DigitalOcean Holdings' Total Current Assets are very stable compared to the past year. As of the 28th of November 2024, Return On Tangible Assets is likely to grow to 0.02, though Net Tangible Assets are likely to grow to (416.8 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (3.48) | (3.31) | |
| Tangible Book Value Per Share | (8.90) | (8.45) | |
| Enterprise Value Over EBITDA | 30.25 | 28.73 | |
| Price Book Value Ratio | (10.54) | (11.07) | |
| Enterprise Value Multiple | 30.25 | 28.73 | |
| Price Fair Value | (10.54) | (11.07) | |
| Enterprise Value | 7.5 B | 6.7 B |
DigitalOcean Holdings showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Beta 1.829 |
Basic technical analysis of DigitalOcean Stock
As of the 28th of November, DigitalOcean Holdings shows the Coefficient Of Variation of 3157.92, downside deviation of 3.26, and Mean Deviation of 2.17. DigitalOcean Holdings technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.DigitalOcean Holdings' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific DigitalOcean Holdings insiders, such as employees or executives, is commonly permitted as long as it does not rely on DigitalOcean Holdings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases DigitalOcean Holdings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
DigitalOcean Holdings' Outstanding Corporate Bonds
DigitalOcean Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. DigitalOcean Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most DigitalOcean bonds can be classified according to their maturity, which is the date when DigitalOcean Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US254067AN14 Corp BondUS254067AN14 | View | |
| US254063AW09 Corp BondUS254063AW09 | View | |
| US254063AU43 Corp BondUS254063AU43 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| DIGNITY HEALTH 5267 Corp BondUS254010AE13 | View | |
| DIGNITY HEALTH 3812 Corp BondUS254010AD30 | View |
Understand DigitalOcean Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing DigitalOcean Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0318 | |||
| Market Risk Adjusted Performance | 0.046 | |||
| Mean Deviation | 2.17 | |||
| Semi Deviation | 3.14 | |||
| Downside Deviation | 3.26 | |||
| Coefficient Of Variation | 3157.92 | |||
| Standard Deviation | 3.21 | |||
| Variance | 10.31 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.41) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.036 | |||
| Maximum Drawdown | 22.0 | |||
| Value At Risk | (4.36) | |||
| Potential Upside | 5.16 | |||
| Downside Variance | 10.61 | |||
| Semi Variance | 9.88 | |||
| Expected Short fall | (2.34) | |||
| Skewness | (0.59) | |||
| Kurtosis | 4.77 |
| Risk Adjusted Performance | 0.0318 | |||
| Market Risk Adjusted Performance | 0.046 | |||
| Mean Deviation | 2.17 | |||
| Semi Deviation | 3.14 | |||
| Downside Deviation | 3.26 | |||
| Coefficient Of Variation | 3157.92 | |||
| Standard Deviation | 3.21 | |||
| Variance | 10.31 | |||
| Information Ratio | (0.01) | |||
| Jensen Alpha | (0.21) | |||
| Total Risk Alpha | (0.41) | |||
| Sortino Ratio | (0.01) | |||
| Treynor Ratio | 0.036 | |||
| Maximum Drawdown | 22.0 | |||
| Value At Risk | (4.36) | |||
| Potential Upside | 5.16 | |||
| Downside Variance | 10.61 | |||
| Semi Variance | 9.88 | |||
| Expected Short fall | (2.34) | |||
| Skewness | (0.59) | |||
| Kurtosis | 4.77 |
Consider DigitalOcean Holdings' intraday indicators
DigitalOcean Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of DigitalOcean Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
DigitalOcean Holdings Corporate Filings
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 13th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
8K | 4th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
DigitalOcean Stock media impact
Far too much social signal, news, headlines, and media speculation about DigitalOcean Holdings that are available to investors today. That information is available publicly through DigitalOcean media outlets and privately through word of mouth or via DigitalOcean internal channels. However, regardless of the origin, that massive amount of DigitalOcean data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of DigitalOcean Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of DigitalOcean Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to DigitalOcean Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive DigitalOcean Holdings alpha.
DigitalOcean Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards DigitalOcean Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
DigitalOcean Holdings Historical Investor Sentiment
Investor biases related to DigitalOcean Holdings' public news can be used to forecast risks associated with an investment in DigitalOcean. The trend in average sentiment can be used to explain how an investor holding DigitalOcean can time the market purely based on public headlines and social activities around DigitalOcean Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
DigitalOcean Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for DigitalOcean Holdings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average DigitalOcean Holdings news discussions. The higher the estimate score, the more favorable the investor's outlook on DigitalOcean Holdings.
DigitalOcean Holdings Corporate Management
| Cherie Barrett | Senior Officer | Profile | |
| Wade Wegner | Chief Officer | Profile | |
| Gabriel Monroy | Chief Officer | Profile | |
| Bratin Saha | Chief Officer | Profile | |
| Lawrence DAngelo | Chief Officer | Profile | |
| Warren Jenson | Independent Director | Profile |
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DigitalOcean Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Is Internet Services & Infrastructure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DigitalOcean Holdings. If investors know DigitalOcean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DigitalOcean Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.65 | Earnings Share 0.86 | Revenue Per Share 8.348 | Quarterly Revenue Growth 0.121 | Return On Assets 0.0438 |
The market value of DigitalOcean Holdings is measured differently than its book value, which is the value of DigitalOcean that is recorded on the company's balance sheet. Investors also form their own opinion of DigitalOcean Holdings' value that differs from its market value or its book value, called intrinsic value, which is DigitalOcean Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DigitalOcean Holdings' market value can be influenced by many factors that don't directly affect DigitalOcean Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between DigitalOcean Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if DigitalOcean Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DigitalOcean Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.